Bangkok--21 Jan--Standard & Poor's
Standard & Poor's investment-grade and speculative-grade spreads tightened on Friday, to 495 basis points (bps) and 1,472 bps, respectively. By rating, the investment-grade spreads tightened an average of 2% from Thursday's figures, with 'AA' at 335 bps, 'A' at 421 bps, and 'BBB' at 625 bps. The speculative-grade rating spreads tightened about 3% on average, with 'BB' at 970 bps, 'B' at 1,563 bps, and 'CCC' at 3,008 bps.
Industry spreads also tightened across the board, with financial institutions at 710 bps, banks at 552 bps, industrials at 836 bps, utilities at 497 bps, and telecommunications at 626 bps.
With speculative-grade defaults accelerating, a higher preponderance of credit downgrades, and a general malaise about the future of the economy, we expect spreads to remain at their elevated levels for some time as investors, the credit markets, and the economy cautiously tread through the current recession.
Media Contact:
Mimi Barker, New York (1) 212-438-5054, [email protected]
Analyst Contact:
Diane Vazza, New York (1) 212-438-2760